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tv   Washington Journal  CSPAN  May 16, 2014 7:00am-10:01am EDT

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new rules for noted internet. analyzelook at ways to gross to mastic product with erich strassner. ♪ host: a rather busy news week in washington and around the country. we will want to hear your views on some of the public policy issues that are in the news this week. this morning on "washington journal," you can see the numbers on this rain. if you are a democrat, democrats, (202) 585-3880. republicans, (202) 585-3881. independents, (202) 585-3882. you can contact us via social media if you want to make a comment.
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you can continue the conversation on twitter as well. you can send us an e-mail as well. and are some of the stories how they are playing this week. here is usa today. fires andure of the california. 100% of the state of california is in danger of fire. the lead story is about the net neutrality vote at the fcc yesterday. battle for the internet begins is the headline. they lead with eric shin seki up on capitol hill. he is grilled over care. the new york times leads with quiet unrestrkers in cities in east ukraine.
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thousands of steel workers fanned out on thursday, establishing control over the program and militants who until recently had seemed to be consolidating their grip on power. by late thursday, minors and steelworkers had deployed and at least five cities, including the regional capital. they had not become the dominant force of that they were in the second largest city. the lead story in the new york times. "wall street journal" leads with net neutrality. up tolls proposal sets battle in a move that is divided. giants try to figure out how to keep the internet open and handle web traffic.
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tom wheeler said he would ban broadband providers from blocking or slowing down websites, but leaves the door open for them to strike deals with content companies for preferential treatment or fast lanes to customers. votedmocrat-majority fcc 3-2 along party lines to open the proposal to public comment for 120 days, with an eye towards voting on final rules later this year. president at the new 9/11 museum with michael bloomberg. this is from "politico." republican senator's call for benghazi select panel. they're calling on harry reid to establish a committee to investigate the 2012 attacks in benghazi. in a letter by lindsey graham, the republican senator said the only has a partial view
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of the facts about the attacks on a u.s. compound that killed four americans, including ambassador chris stevens. the new york times -- they have this article about the firing of jill abramson's. seeks to reassure its staff. a day after they had dismissed jill abramson, the first female executive editor, it found itself mired in controversy, having to reassure employees and rebut reports that her removal complaints about receiving less pay than her male predecessors. departure on her wednesday, the company said she had been fired because of management issues. through thursday, a strong counter narrative had emerged in the news media, including me "morning joe" show that she had been a victim of sexism by being
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held to a different standard than male editors. the news reverberated on capitol hill. the debate: star around the issue of gender, senior times editors met with employees to reiterate the company's rationale for dismissing ms. abramson. the decision did not reflect aboutome -- sexism and pay disparity, but about her style of leadership. from "the hill," gop blocks tax breaks bill. senate republicans blocked progress on an $85 billion tax anger aimedd deep at harry reid. in a 53-40 vote, they failed to end debate on the tax package.
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60 votes were required to move it forward. kirk ofator mark illinois voted with the democrats. of the republicans blocked the measure, even though many support the slew of expired tax , out of frustration with reed, who is preventing the minority party to offer amendments to the bill. we do not have a chance to amend it. mitch mcconnell said that ahead of the vote. also from the hill this morning, this article about senate panel approving $265 billion highway bill. the senate environment and public works committee approved 200 62that would spend $5 billion on transportation products -- projects over the years if congress can come up with the money.
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would provide $204 billion over the next six years, which is not enough to pay for the projects the panel wants to fund. yet to takes significant action on a transportation bill and some observers are skeptical a deal could be carved out. a little bit of some of the news moving in the papers. democrats, (202) 585-3880. republicans, (202) 585-3881. independents, (202) 585-3882. cornelius is a democrat in roanoke, virginia. what is on your mind? caller: how are you doing? host: good. caller: i'm calling to ask you if this coming week they're
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going to be working on the unemployment extension on the insurance. host: why is that important to you? caller: a lot of people are looking for jobs for over a year. some ran out in april, that is what is wrong. host: have you been using unemployment insurance? caller: mine ran out in december. i have been looking for a job every week. the -- whatas been is the market out there for you? caller: i am in my 50's. it is hard for people in their 50's to look for a job. thank you for calling in. a reminder to our viewers, turn down your volume. this is the article on what happened yesterday in the
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senate. spurredoblems democratic unease. democrats showed an -- theeasing nervousness, agency's expected -- inspector general found no evidence patients died because of long waits or care. out ofarizona republic, phoenix, where the story began, here is the big front page story. investigators join probe of vets' care. [video clip] >> i came here to make things better for veterans. every day i start out with the caret to provide as much and benefits for the people i went to war within the people that i spent a good portion of my life with.
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i am here to accomplish a mission that i think they deserve and need. the pastl you over five years, we have done a lot to make things better. we're not done yet. i intend to continue this mission until i am satisfied. line, thet the goal commander-in-chief that my time is served. anthony, sioux falls, south dakota. caller: good morning. thank you for c-span. i would like to comment on secretary said checking -- shinseki, his leadership. you cannot lay this all on him. system has been like that for decades. than are more employees
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there are veterans. mess, massive bureaucracy. i am a vietnam veteran. i remember when max cleveland was appointed as secretary of the v.a.. a triple amputee and all of that. he wanted to make some changes. they wheeled him around and he could not get into the knicks and crannies. they did not show him anything. shinseki cannot do anything with those people. they should not be blaming him. host: thank you. a washington times editorial -- the v.a. keeping veterans waiting. and we do not question the .incerity of eric shinseki
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he would never allow his brothers in arms to suffer if he could help the. what we do question is whether the government knows how to provide effective health care. notedptical observers when president obama peddled his health care takeover of few years ago, putting the government in charge leads to a shortage of doctors, bureaucratic interference, and what we are seeing at v.a. is a sign of what is to come under obamacare. that is the washington times. thisational journal has article. obama has every reason to fix why hasn't he? v.a. backlog isn't just about putting the proper resources into the agency. solving it would require not a dysfunctional
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bureaucracy surrounding the v.a. claims system and decades of neglect, it would also mean overcoming a perfect storm of factors in the past few years that has made the problem much more worse. the v.a. received one million new claims during obama's first year in office. the count climbed from there. annual claims peaked in 2011 at 1.3 million, following the 1.0 4 million claims received in 2013. that is the national journalists morning. melissa, hawaii. good morning. i want to comment on these affairs going on right now.
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everything, this is a nightmare for our family. obamacare is taking everything away from us. on -- thing.ment with the nsa, when they are trying to spy on us, it is really bad for us. i am being honest. when the nsa listens to our conversations, it is really embarrassing. the: do you really think nsa is listening to your phone conversations? caller: i know they are. think about this for a second. do you want to listen to you and your personal private stuff? it makes no sense. this is unpatriotic. host: that is melissa in hawaii.
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from the hill this morning, senators want inquiry into o-care center paid to sit and hit refresh. paid to doting virtually nothing. recent reports have revealed employees do not have the workload they expected at the center. it was awarded a $1.25 billion contract to handle paper insurance applications under the affordable care act. the facilityruns has told employees to stay put and continue refreshing their computers for new cases. member of the senate committee on health education, labor and pensions wrote a letter to senators for medicare and medicaid services administrator, maryland tavener,
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asking the agency to detail when it became aware of the problem and what it is doing to address them. 660ays this facility has workers. michael, fort lauderdale. caller: good morning. are we still speaking about the veterans issue? speaking about public policy issues, that is one of them. caller: i am a 17-year-old. i am in high school. i am in my homeroom. i want to provide insight. i am a republican. it is not that it is barack obama's fall. it is decades of negligence. placea bad system put in by both republicans and democrats. it has never been our priority. they come back, you do not
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do anything to rehabilitate them. [indiscernible] one of the first special operations unit, he told me, us at a high train level, so once we come back, we don't have anything else to do. most people are joining the military for college benefits and stuff. when you go to something like that and experience ptsd, you're not expecting to have a stable life when you come back from that. fromyou come back deployment, like my grandfather was saying, in korea, he pretty much said that you are physically not there. you are expected to go into the workforce. it is conflicting. host: you are 17. have you thought about joining the military? his roommateother,
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is a navy seal. that's what i wanted to do since i was seven years old. where'd do you go to high school? caller: st. thomas aquinas high school. new york times, the lead of theal is on the issue net neutrality vote, searching for fairness on the internet. voted 3-2 along party lines to consider two options. as long as the conditions are met, telecom companies would also be able charge businesses like netflix fees to deliver movies faster to consumers and others. under the second option, the commission would reclassify broadband as a telecommute and
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-- a tele-communications service, akin to a public utility. that would allow for more stringent regulation that could prevent companies like verizon and comcast from engaging in unreasonable and unjust discrimination. the fcc should take more time if it needs to. these rules are too important to rush through. tom is a little bit of wheeler from yesterday. [video clip] i have had hands-on experience with the importance of network openness. the nationallow asset of an open internet to be compromised. issue in my this bones. from when myars
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inpanies were denied access the pre-internet days. the consideration that we are beginning today is not about whether the internet must be when wet about how and will have rules in place to ensure an open internet. journale wall street also has a common on the net neutrality vote. one sure result, if telecom regulation as applied to the internet is that fewer new networks will be built and fewer startups will even tried. public will await
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comment on its two alternatives before it writes a final will. -- rule. may need to try selling my business before anything like this can be an active. william is calling in from las vegas. what is on your mind? to talk about the ineffectiveness of washington to get anything done. we're talking about unemployment extensions, net neutrality, veterans affairs. onare having a hearing everything, but nothing assault. the ineffective of our government to get anything done is mind blowing. why hearingsrstand you havezi, irs this, families who cannot get through
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the next month because they cannot extend unemployment. we can spend that money offshore to foreign countries to settle their issues. i thought you took care of your own first. host: what do you do in vegas? caller: i work for a company in vegas. it is a factory. host: how is the economy out there? it is improving, but it is still bad. i have over a dozen friends i cannot find a job out here. they are just making an hand to mouth. politicians, they are doing everything they can to get everything done. i am an independent for one reason. i am an independent because i do not feel either side is getting the job done.
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ton i post my vote, i want in sure that i am voting for the right people and i am not picking a side. host: thank you, sir. did you have something else to add? venting as i am just to how ineffective the government is. host: this is anthony, arizona. caller: good morning. [indiscernible] disabled veteran before i went off on the last mission. i was 40% disabled but i went because i still wore the uniform as a reservist. i left my civil service job to do that. in order to return back to that civil service job, i had to make discharged,onorably
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which meant i would not do anything to threaten and $80,000 year job. at the time that i was [indiscernible] to be 100%mined [indiscernible] issues haveancial been affecting me. i am going to push that to the side. i could die at any moment. [indiscernible] the fact that we have so much hidden information that they want to portion out to us. why do we have to hide information about what one
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employee makes over another? gottenamson should have more money from the previous editor when she started that job. when you go ins and take over someone else's position, you have to put your imprint on that organization or else you are not a change manager. a lot of ink on the issue of jill abramson. salary, 100,000 below mail editor. substantially less than her male counterparts, sometimes by as much as $100,000 for the last 14 years of her career. compensation may have had something to do with her firing.
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reports that as executive editor, her starting salary in 2011 was 470 $5,000, compared to 500predecessor salary of $59,000. her salary was raised to five $3000, then again to $525,000 after she protested. it goes on to talk about some other figures that she made over the years. that is that political if you ico if you aret interested. beats times in pr fight. her downfall has become a flashpoint for conversation about gender and inequality that is eclipsing what sources cited as the reason for her termination. the swift passage of this narrative to conventional wisdom has elevated her standing while highlighting the times' ina abruptto manage his own
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transfer of power, which caught the media industry offguard on wednesday. thiswashington post" morning -- jill abramson, enduring bias? there were disputes intentions. there were differences over strategy. hours after the first woman to run the new york times' vaunted newsroom was unceremoniously shown the door, much of the discussion came down to a single issue -- sexism. was she the victim of a double standard? did she lose her job because she was some of the things -- tough, imperious, aloof -- that men in management are allowed to be and often rewarded for, but for which women are punished? amonge taken down for, other things, having the gall to seek coppin station equal to her male predecessor? totter rain with accusations
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that effect on wednesday and thursday. what happened to jill abramson has -- shows everything that sucks about being a woman leader. republic laid out the sexual politics with a piece that carried the subhead -- trying to explain a singularly humiliating firing. the theme bubble to the surface on wednesday in the times newsroom, too. stunned reporters, who gather to learn news they did not see coming about abramson, asked publisher if abramson was being treated differently than a man. no, sulzberger said, adding a as womenness coda -- reach the top, bill get fired just as men have been. and with that, he, along with abramson, declined to comment
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further about the circumstances of her departure. yesterday, andet instagram picture of her yesterday, boxing. by hers instagramed daughter. she has a couple of tattoos that have been written about. one with the new york times "t" and a new york subway token. an article from last sunday, where you can see her name still on the top. masthead.is morning's is now see dean baquet the executive editor. what is the public policy issue on your mind this week? thank you, c-span.
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you have donehat about the net neutrality and the articles that you read, i feel that that is a very interesting -- probably one of the most important decisions made by the commissioner -- he did not make it, but it was 3-2 as described in the article that you read so excellently. -- theuation is this protesters, i consider their point. concerned that capitalism was trying to take over the internet. well, it's not. it is really freedom. freedom is trying to take over.
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it is open-source. so there is a lot of misunderstanding by the republican commissioner, there was misunderstanding by the democratic commissioner, and i am glad that the vote of 3-2 120 days of proposal writing so issues can be resolved and freedom and capitalism can be maintained in an open-source fashion in the internet. as commissioner wheeler stated, one of the most important rulings -- well, it is not a role yet. it is a proposal now. --andr the next 120 days i will submit one, too, i believe -- the open-source characteristics of the internet will be maintained and capitalism will go one. host: that was douglas from
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illinois. tom, independent line. the r: i am calling about va situation. i served three tours in vietnam. also, ibm and amputee. and amputee. i have nothing to say about the medical side of the v.a. -- it is the best of the world. i have seen several hospitals around the country and i have never been treated as well as in .he va hospital however, i do have issues about the administrative side of the v.a.. pointed out,nders approximately five years ago the v.a. received a big boost in the budget and all they hired were middle-management people.
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the administrators had to look at the backlog of over a million claims like mine. they were complaining about it for 6, 8 months. liste been on a waiting 2008,x years now, since without hearing much about my clean. but these middle-management people that were brought in, they have reduced the claims. hear sometime this year about what happened to my clean. they received, they hired middle-management to clear the backlog. enough people doing the medical side. --doingshinseki the administrative backlog in
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getting rid of that and i commend him for that. calling in.you for charles krauthammer's column in "the washington post." the sound and the fury and the tweet --
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host: that is a little bit from charles krauthammer's column this morning. and this is a little bit from the dod african affairs directorate talking about u.s. support for nigeria. [video clip] greaterld say an even concern is the incapacity of the nigerian military and the government failure to provide leadership to the military in a way that changes these tactics.
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the division in the north that mainly is engaging with boko , seventh division, has recently showed signs a real fear. they don't have the capabilities, training, and equipment that boko haram does exceptionally is brutal and indiscriminate in attacks. so as heavy-handed as the nigerian side forces have been, boko haram has been even more brutal and we are now looking at a military force that is quite frankly becoming afraid to even engage. that is one of the things we are talking to the military leadership about, about how to get the training and also the orientation of the forces under control so they will feel more competent to face the threat. gowdyfrom politico, trey names the benghazi panel. here is his picture. he worked for jim sensenbrenner for a while and was staff
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director at the house administration commission. larry is in tuscaloosa, alabama. democrat. caller: i would like to talk about the v.a. to sayst, i would like hello to all the c-span listeners and to first lady mrs. obama and the president, mr. , and i would like to say hello to one of the directors of the regional offices here in montgomery, alabama. the reason why i am calling -- i the a complaint against hospital. like what is going on now with the scheduling of appointments. here in tuscaloosa, alabama, we don't have an emergency room. what they are telling the veterans now, when you are calling for an appointment, you must go to a civilian hospital or the nearest va hospital to be seen.
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said, i was taken something described by the v.a. and i got constipated for a week and a day. so i called my primary doc there here at the va hospital -- a doctor here at the va hospital and i asked a nurse and i said, can i come out and see my doctor? she informed me that he was booked up until may -- which is this month, may 22. they sent me an appointment date, may 22. now this happened in february of this year when i became constipated. host: if you can bring this to a conclusion, that would be great. therethe conclusion is, was no way feasible i could wait for three months to see a doctor . pardon me, sir? , it seems like to me that the hospital should have been responsible for the bill since they sent me to a civilian
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hospital. but the v.a. said they were not going to pay for it. that is larry's experience with the v.a. system. from "the daily caller" this morning, condoleezza rice did an interview that made news. on benghazi, still unanswered questions. those who believe there are legitimate questions that have not been answered about the 2012 benghazi attacks. that is at "daily caller." and this is an politico this morning -- condoleezza rice on runbush -- "i hope he does ," is what she said in an interview. and then valerie jarrett -- we nere a commitment from boeh on amnesty this year.
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lead from is the breitbart. missouri, republican line. robert, you are on "washington journal." caller: thank you for c-span. i am a retired veteran, 81 years old. is what sad what happened out in arizona. over 65 oneople medicare, they should not use the veterans -- they should leave that open. i have no problem with the government. i have no problem with medicare. every time i go to the hospital for something, i get taken care of. for bill clinton,
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our former president. he is a good man. got tri-care in for the veterans and if it wasn't for that i don't know what i would do. host: here is another robert from south carolina. democrat. caller: good morning. calling him concerning the v.a. i had tremendous problems just trying to get appointments at the v.a., and it is just a vicious circle. 2004, on the in left or right side and they do not want to seem to take responsibility for that. host: from "the new york times," the decision that helped shape michelle obama. was born into the segregated chicago in the 1960's when
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public schools actively resisted integration --
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host: that is in "the new york times" this morning. is lawrence from lehigh acres, florida. independent line. what is on your mind this morning? caller: i just wanted to say there are doctors and the va hospital that i have gone to that do do their job and they do it good. although it took me 45 years to get the correct compensation rating, as i was medically discharged in 1968 with 30% notbility and it was honored and for many years i
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went after it. but i was finally able to get through. and the doctor that did it with me and my family, help to me and told by her,was they give her 12 cases to the other doctors's three and four and how unfair it is. if you don't do your job, you really should be there in the first place. i don't know how those doctors can stay there. i don't know if it is because of unionism or the rest of it, the things that go on in this country. deal.at's the there are good doctors in the v.a.. and there are bad doctors. and bad workers. host: "the washington post" -- b ees still dying at alarming rates. nearly one out of four idb colonies died over the winter -- honeybee colonies died over the winter.
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host: that is just a little bit, in case you are interested in that topic. annual assets report came out from the president and the vice president. the obamas had up to 7 million in assets. the record show most of the president income came from royalties from his three books and investments made possible by the proceeds. his memoir, "dreams from my father" continue to make the most money for mr. obama.
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"the audacity of hope" in 2006 are in between $15,000 and $50,000. host: here are the tax return pagers -- the obamas $98,000-plus in federal taxes -- host: and finally, from "the wall street journal was quote this morning, can the pentagon save earth from space junk? journal"the wall street ."
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host: if you want to get some more details you can go to "the wall street journal" and read the article. constance from tennessee, a republican. issue, i have a medical -- like most of americans, don't have medical insurance. obamacare does not really paid off, in my opinion. what is the number one treatment for alzheimer's patients who forget out of each and lose weight -- we give them drugs that makes him fall and break their hips? what is the best medical
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treatment for alzheimer's patients who don't know how to eat anymore? what is the best medical treatment for somebody with alzheimer's? host: can you answer that question? caller: it is called a marijuana brownie. they are forgetting how to eat. marijuana is a natural herb. and we can dispense it. host: we will leave it there. we got the answer. thank you very much for calling in. a couple of tweets on public policy issues. marie tweets --another crushing -- pressing issue, benghazi cover up scandal --
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host: coming up, we are going to be looking at the u.s. housing industry and we will talk about the issue of net neutrality and what the fcc did a little bit later. but up next, we will be looking at the u.s. housing market. >> located in the southern part of alabama between the panhandle of florida and the state of mississippi on mobile bay. the story downtown mobile, there are many things to do. from the history museum to the carnival museum. we also have the battle sip -- alabama.p uss you walk up a huge gangplank. it is an experience if you have never been on a navy ship,
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because the passageways are narrow, the stayers are steep. the quarters are confined, and you have to think, my gosh, what would be like in the ship in 20 to 30 foot rolling seas especially when somebody is shooting at you? when i was maybe a third or fourth grade, school children -- inhere in this a, what this state, they would give a dime and nickel to try to bring the battleship that the mobile. it is part in the battleship causeway. there are a lot of historical airplanes and military equipment there. but it is a must see if you come to mobile. first you remember who influenced you to think about issues and to think about government? what's my father and mother. i was so impressed i it -- >> my father and mother, and i was so impressed that i put it in a book on how they raised the four children, two girls and two boys, in a factory town in new england.
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it was conversation around the dinner table. there was no looking at tv or listening to the radio. we talked. and they challenged us, in a nice way. they asked us questions and needled us and joked with us. bottom line is freedom requires civic response ability. you can just say i want freedom. he cause me to -- because most people think they are free because they are personally free -- they can buy their own clothes, make their own friends and go wherever they want, and listen to whatever music, eat whatever they want. that does not mean they are .ynically -- civicly free you have to engage in democracy. as my dad used to say, if you don't use your right you will lose your rights. >> ralph nader on c-span's "q&a." is a dina elboghdady "the washington
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post" who covers the housing industry. what is going on on capitol hill when it comes to the housing industry -- not just capital but washington as well? guest: there has been a lot going on the past couple of weeks. basically there has been a big bill moving through the senate, it got through the senate banking committee overhaul fannie mae and freddie mac. yesterday the senate banking committee had a vote 13-9, they passed it, but it is probably not going anywhere. while it got bipartisan majority, they did not get the central liberal core of the banking committee that they really needed in order to push this to the senate floor. thinksyone pretty much it is stalled for now, but i think this is an issue that will keep coming up over and over. all, if it passed the committee -- but you are saying it will not go anywhere. worst of all, what would it have done to fannie and freddie? guest: it would have dismantled them over a five-year period. the major point was to shift the
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risk of mortgage lending from the taxpayers to the private sector. because, of course, fannie and freddie were taken over by the government in 2008, the height of the financial crisis, and they have been under government control since then. and part of the problem was that even though they were profitable for many, many years during the housing bust, the losses overwhelmed them. they just didn't have enough capital to keep running. the government has to step in, take them over, and they have been under government control ever since. host: also joining us is daren blomquist from the new york studio, vice president of a ltytrac.lled rea cuest: yes, it is realtytra and we collect public record real estate data. a lot of people know was for collecting foreclosure data, we get people to collect it from counties across the country.
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we also collect all other types of real estate data from tax and deed and mortgage type of data as well as what we call home tax ts data, home fac anything you want to know about the house. host: how would you describe the health of the u.s. housing market? guest: i would say we are kind of in a jekyll and hyde housing market. there is a lot of good signs, when you look especially at home prices. but under the surface, there is still some lingering distrust left over from the housing should -- crisis that has not been fully dealt with yet. i think that is what everybody is concerned about, along with the somewhat anemic economic growth that people are concerned that this housing recovery is not for real or not as good as it appears to be. so we look at home prices, they had a very big jump in many
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areas in home prices in 2013, but we are starting to see the numbers him down, home price appreciation slowed down in many markets across the country. foreclosures are down to nearly pre-recession levels. actually we just came out with april numbers yesterday, and properties15,000 with foreclosure filings in the month of april. that is down from a peak of over 367,000 in march of 2010. and we are almost back -- before the recession we were seeing about 85,000 foreclosure filings a month. we are getting that closer to that level. that negative piece is largely gone from the market. housing prices are going up. but there is what i call a hole in the housing recovery that consists mostly of first-time home buyers and move up buyers not participating as much in the housing recovery as you see cash
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buyers and investors participating in the housing recovery, and that is a concern that this is not as sustainable as we would like to see. host: there was an article recently in "usa today," and it was talking about the fact that the middle-class cannot afford to be a homeowner today. yeah, we see that in our data. did an analysis of median incomes which is largely stagnant versus home prices and average rental rates across the country. i am not sure if that article but weced our data, found that in one out of 3 -- if you look at it on a county basis, it doesn't look so bad. only about 20% of counties across the country would you say .re unaffordable specifically for rent, the
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average mortgage payment is 30% of income. but if you look at it on a population basis, for rent, about 34% of the population lives in one of those housing markets where rent is more than 30% of the medium income -- median income, so one out of aree americans living in market technically unaffordable to rent and then you look at buying, it is a little bit better. actually better to buy and less expensive to buy than rent in most of the country, but still, there is 15% of the population living in one of those markets where the median income -- or excuse me, based on the median price of a home, you would have to spend more than 30% of your income to make the monthly mortgage payment. one of the things we notice this is a lot of these unaffordable markets, both to buy and to rent, are in areas where the
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, theer -- it skews younger younger generation lives, so the is a problem because younger potential renters or buyers are the ones who we would expect to be kind of the foundation of the housing market growth in becoming those first-time homebuyers. ilityes, unaffordabl has snuck up. we looked at 47 markets across the country where it is both unaffordable to buy and rent. maybe not surprisingly, many of those are in coastal california, all five boroughs of new york are included. many of the markets where the younger generation lives are unaffordable both to buy into of those markets at a slightly more affordable to rent than it is to buy.
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elboghdady, is washington looking at the affordability issue? by the way, we will put the money -- numbers up on the screen. guest: there has been a lot of talk about affordable housing for lower and middle income people. that is part of the bill from yet today. one of the reasons why it stalled is a lot of the liberal democrats on the committee did not think there were enough protections and therefore lower and middle income people. and fannie and freddie for a long time have had goals. they had to buy a certain number of mortgages from people in underserved areas. the bill that passed yesterday would eliminate those goals and just set aside a bunch of money for that purpose. and so that was one of the major stumbling blocks for the bill number is a lot of liberal democrats did not think the access issue was there. fa and whatis the fh
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is the goal? guest: it is the agency that took over fannie and freddie and it oversees them. there's a lot of focus on the agency because ittime north car. he is basically saying that until congress comes up with a reducee does not want to the footprint of the fannie mae and freddie mac. huge reversal from his predecessor. he was reducing the footprint. that was a major policy shift. there have been a rash of articles about the fact that student loans may be the bad housing market. have you seen those? what is your take? guest: is interesting. it makes sense.
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we do not have the data specifically. it makes sense that if you have a bunch of debt coming out of -- the numbers are staggering when you look at some of these reports. you have a bunch of student loan debt coming out of college, at that point, you may be buying a house, you may not want to take on more debt. date on that, our it seems to be more tied to just -- even if you do not have additional student loan debt, these markets, where a lot of the younger generation are living, they are unaffordable, even if you did not have the additional debt to deal with. these -- at mentioning we looked at the top 50 zip codes that are least affordable to rent in. those is zip codes, many in
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california, new york, new the 20 to 40 age range is higher than the national averages in those 50 zip codes. whether or not they have additional debt, just looking at the average income that would be afford properties in those areas is tough. those markets, on average, of incomeo spend 48% to pay for average rent. it is even less affordable to buy. spend 53% of your income if you are in the median income in those zip code's. fundamentally, it has more to do with just the opportunity,
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whether or not you have the additional student loan debt, but that certainly makes it tougher when you have the additional debt. , based on the fannie and freddie guidelines, the toditional amount, debt income ratio is 43%. if your monthly debt that you're paying out to student loans or other debt is more than 43% of , that will automatically disqualify you for getting a mortgage. there are many counts against irst-timeential f home buyers. they have this additional debt that is going to make it harder for them to qualify for a mortgage. i think that is part of why we
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are not seeing first-time homebuyers in the market is much. the homeownership rates are much lower than historical averages. guest: it is not just an ty issue.i buyers have a tough time getting the cash down payment together. that hits people right out of college particularly hard. it is also access to mortgages. it has gotten tougher to get a mortgage since the financial crisis hit. people have to have incredibly high credit scores to get in. it is a two pronged issue. a third would throw prong in there. another fundamental issue is the low inventory of homes for sale. even if you overcome the first two hurdles, you are competing
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against other buyers. many are cash buyers. able to qualify for a mortgage and you can afford it, you may be competing against buyers who have cash and they will go to the front of the line and that is a challenge. investors were part of the reason prices shot up. they were snapping up all of these foreclosures on the cheap area and they were offering all cash, all the time. a lot of people got shut out in the process. york homew 80% of new sales were cash. that was just recently. guest: i had not heard that number yet. that is something we looked at. i was discussing with someone in manhattan, an appraiser who is knowledgeable, we were looking at those numbers.
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when you dig into the meat of the market, the condos and townhomes, it is 60% that are cash sales. the end result is it is still very high. least, up to 80%, depending on what housing stock you look at, are cash sales. is not the federal's governments job to save housing. how involved is the federal government in the housing market? extremely involved. i think they have something like 80% of the market. they play a huge role in supporting the market.
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host: loganville, georgia. your first up. buy bad insurance loans from people like bank of america who commit fraud. i don't understand why freddie and fannie have to take those loans back to the insurance process. you have the investors that come in here and they buy up these foreclosures. the agents may be listing things, but they don't really listen to them. the only thing you have on these trashed outhouses is they are buying on $.30 on the dollar and they buy them and they drive up rents. they are back in the market now, building a different name. how they are able to do that and still get millions of dollars
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worth of loans is beyond me. i am looking at this data in the market and it is flat out crazy. the v.a. system, the way they do that and the appraisal process is a joke. the percent on the commissions is nuts. why we are still paying that is crazy. i am a real estate appraiser in the state of georgia. i do this every day for a living. i do the supply and demand. you are right about the investment in the cash to the market. they have pocket listings and they sell these investments and one cash.
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the loan officers do not want to do the program because there's not a lot of cash. you have these trashed houses that freddie mae and fannie mac own. that only leaves a cash buyer. host: how is the housing market in atlanta? caller: it is great. you can show up at the courthouse in by a couple houses for 30 or 40 grand that you can probably sell for 80 to $90,000. host: thank you for that. what response do you have for that color? -- caller? told --e have been talking to folks may atlanta market were nervous that the investor interest is so
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when these big private equity money that is coming in and buying up properties as rentals, the concern is, if and when they pull out of the market, the market will experience a downturn in atlanta. number onethe market, when we look at our data, for these institutional investors. sales is goingl to one of these big institutional investors in atlanta. countrye most in any mesh any county. the 20 three came mortgages, one of those hidden gems is not available to investors. in and buy a to go
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property and get money for the rehab. it is suitable for properties that are highly distressed and need extensive rehab. in and get the purchase money to buy the property, but the rehab money. it tends to be underutilized because from lender's perspective, it is more of a complex and difficult one to deal with. host: the head of the finance authority spoke this week. here is a little bit of what he had to say. [video clip] >> repurchase risk is a top concern for the mortgage industry. lenders believe that there is still too much uncertainty in this area for them to keys their credit overlays.
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ultimately, this undermines the goal of improving access for mortgage credit, for credit worthy borrowers. with fannie,ions freddie, and lenders over the past several months, we are making a number of refinements to address some of these concerns. as fannien rise and mae and freddie mac announced yesterday, they're going to relax the payment history requirement for granting representation and warranty relief, by allowing two delinquent payments in the first 36 months after acquisition. get loan level confirmation when mortgages me performance benchmarks and when they pass a quality control
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review. enterprises will also eliminate automatic repurchases when a loan's primary mortgage insurance is rescinded. is what heignificant announced? it is pretty significant. a lot of loans started going bad and they realized that the loans did not meet the standards. lenders had to buy back loans. it has cost a lot. as a result, they tightened their standards because they do not want to be in that position again. that is the access issue we were talking about. toy tightened and tightened the point where the pendulum had swung too far in the other direction.
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watt was saying he would loosen some restriction so they would not have to buy back the loans under certain conditions. host: next call. frank, new york. we are talking about the u.s. housing market. caller: thank you. there is so much information. taxes in albany, the almost supersede the mortgage. it seems so hard. your mortgage is $500 and your tax the $2200. -- your mortgages $2500 and your taxes are $2200. rental, to have a offset the taxes, you could pay your mortgage, now it is the
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point you can. you have to come up with more and more and more. when does it stop? it doesn't seem like it ever does. i don't know if you guys have an answer. host: any response for that caller? guest: that is something we would like to analyze more. the effect of property tax on the real estate market. that is one of the things a lot of homeowners, when they get , you mayownership forget about that cost of homeownership, which is significant in most areas. new york has the highest property taxes of any state. it is extremely high. that can really raise the cost of homeownership and push people to become renters.
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that is something the federal government is not controlling, but states can look at that and the property taxes are affecting the health of their housing market. where i live, we have the proposition 13, that controls property taxes as an effort to keep homeowners from seeing those huge increases in once they buy the property. a consideration and a cost of homeownership that has to be figured into the equation. host: doug, baltimore. good morning. i am in the real estate business in baltimore. that couldtrend change some of the conclusions you are coming to. the millennial's do not own cars. many of them do not own cars. when you look at your definition
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of affordability, it is really beferent then what may an affordable standard. their choosing more expensive rental options in urban environments and then cheaper options in the suburbs. i think it is a fact that these markers -- these markets are high. what do you do in the housing market and how would you describe the housing situation in baltimore? : we built a lot of retail in downtown baltimore city, where there was not any. it is all customers coming in to new rentals, primarily. the baltimore city real estate market has been healthy downtown. the outskirts of downtown are not healthy and have a lot of issues.
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the downtown area, we are having a boom and it is being driven by empty-nesters and young people. what some oft these young kids are paying for rent, it seems excessive, but their economic decision formula is different than mine. guest: one thing we have not talked about, i am sorry to bring this up right now, prices have been moderating. that is probably paint -- playing a role right now. they will probably moderate for the next year or so. interest rates have been climbing and are starting to come down a little bit. what exactly is wrong with the housing market? is it too expensive, is it too cheap, is it bad quality, bad quality, that laces, poor service, what? problem isbiggest
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that a lot of people were underwater on their homes. they owed more on their mortgages than their homes were worth. that problem, with the price in the paste seen two years is getting better. there is the access issue. a tightening in people not being able to buy. ofst-time homebuyers is one the bigger problems. the fact that people are not entering the markets means the whole pipeline gets jammed. their firstnnot buy home, then the people who are in those homes that are for sale cannot move up and buy the next home. the entire system gets gunked up that way. host: are their pockets that are really healthy and pockets that have the problems that began in 2008? guest: absolutely. we are seeing pockets. it boils down to fundamentals in a lot of areas. havebecause foreclosures
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gone away in a place like detroit does not mean -- and when i mean gone away -- they have not completely gone away, but the new foreclosure activity sign oft visible distress is back to prerecession levels. that market has other problems. market, as healthy healthy as other areas. on the flipside, a contrast to phoenix, where foreclosure activity is back to prerecession levels. the negative is gone, but there are more positives in terms of job growth and population growth. local, as every good real estate will tell you. that is the case when we look at markets across the country. i want to address what the
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question -- what is wrong with .he housing market i would take -- the most significant issue is the underwater issue. has come down significantly, 17%, 9.1ata shows million homeowners with a mortgage are seriously underwater. .hat is down significantly what that represents is one in every five homeowners with a mortgage to it kind of stuck. -- with a mortgage who is kind of stuck. buyers are move-up largely absent, because they have negative equity or very little equity, and another issue we have been hearing about is a who ownhese homeowners homes, and maybe have equity,
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low refinanced at such a interest rate, they do not want to sell their home, because if they sell their home, they will have to get into a higher interest rate when they buy a new home. they love the low interest rate. they are not as interested in selling because they highly value that interest rate. are not aswners .ebel and -- not as prevalent host: joseph, ithaca, new york. caller: thank you for c-span. i used to work on a committee that was working on redlining, something that was a banking, notto investing in low income areas, not investing in housing areas like, detroit,
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and fannieithaca, mae and freddie mac were part of the system that maintained and helped eliminate that process. it was specific banks across the country that were doing this to different areas across the nation. i am listening to one person in particular who was saying she fsjld like to have the disassembled. what does she perceive that would be a technique to ensure that redlining nationwide is not done? guest: one of the major problems is the underserved areas. a lot of the liberal democrats were saying fannie and freddie pay a very important role in that arena. that theseensure
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goals stay in place. on the other hand, the republicans, the ones who opposed the bill say this affordable housing issue and the goals that were thrust upon freddie and fannie are the reason that the housing crisis occurred. there has been a lot of academic study that says that is not the case. it has been a hot political issue. host: what is the sha and its its role?a and and basically have always they have basically always been there for first-time homebuyers. they play a big role in the market.
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they have had problems with the language used and they kept adding premiums. think they raised their premiums about five times. that is a fee that is imposed on the loans. it is imposed on the borrowers. that has cut down their share of the market. i think they have 20% of the market right now. when you look at the national economy, what percentage do you think the u.s. housing market contributes? i do not know the answer to that off the top of my head. it is a significant driver of the economy. i think it helped drive the economy on the upside and was argue that, many
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the reason we got into the great recession tied back to the housing market, which became overinflated and over speculative. it is a significant driver. the interesting thing is we are seeing this recovery, it feels like the two have been more separate. we have seen great signs of housing recovery, but that does not seem to affect and impact the economy as much as we would expect. host: ellen, california. caller: i think one thing that thed change the profile of market is the elimination of the taxed induction for a second home. deduction for a second home. i live in an area that a large
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percentage of the homes are second homes, vacation homes for people. it has driven the market to a level that is unaffordable for the average person living in this area. guest: the second home market has gotten hit really hard. we have seen it in the washington area and the beach communities. it is a problem. i get a lot of calls about that. host: is there public policy on that? can you take full did the actions like you -- can you take full deductions like you cannot your first home? guest: i am not sure. host: what is the risk of a be 20% down payment standard when buying a home? guest: what is driving policy
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right now as they want the homeowner to have more skin in the game. they want the homeowners to be i don't and not say, have much money in this house, no big deal. that is what is driving some of these higher down payment requirements. that is why fha has been popular. it's minimum down payment is reply five percent at this moment. people think of there are no other alternatives, but there are. greg, ventura, california. how would you describe the housing market in your area? it is the same as it is across most of the country. one of the greatest concerns is the rental markets. when they went to the housing bust, it insulated cost appreciation on most of the
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mortgages, but that also domino into the rental market. the rental markets went up as well. after all of the foreclosures, the people that left the foreclosures ended up in the rental markets. no one is addressing that. they seem to be addressing all of the adjustments to mortgages. first-time homebuyers are coming out of the rental market. it not only dominoes from the housing and mortgages, but it went into the rental market, it went into autos, it went into inflating about every part of our economy. i think many people are stuck with the rental high prices right now. upt of the people that ended selling their homes found out they could get to do thousand more than what their neighbors got and it domino. it was false appreciation. those people purchase tire properties.
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they invested into income properties. they got higher mortgages. they never adjusted those rental rates. it seems to be draining the market. a person renting would be able to go and as open to the investors. i actually bought my first house in ventura county, california. so i am familiar with that market. i think what you're saying is part of the fundamental issue of inventory. lack, orthe apparent low inventory in this market, and that is affecting both homebuyers as well as renters. there is limited inventory of homes, particularly to live in, and whether those are rentals or buthases it is driving up because there is still demand. ers have not ramped
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back up to the pre-recession levels. there is low supply that is a affecting -- that is rental levels and supply of homes. i think the statistics would what you were saying that you have the additional supply into the rental market because of all the homeowners who have lost their homes over the last 7-8 years. we are showing about 7.7 million homeowners nationwide have either lost their home to foreclosure or doone a short sale because they were forced to. rentersthem have become , and one of the things we have not talked about is the idea of boomerang buyers. that is a little bit more of a fuzzy thing. -- millionrevious
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previous homeowners, how many are them are going to come back into the market, rather than stay as a renter, and become a buyer again? whether what they did last year to try to encourage the boomerang buyer effect, to lower takes to requalify for a loan once you have gone through floor closure -- through foreclosure. it is now down to one year. will have ant that effect on the boomerang buyers, that remains to be seen. that is one element of this market that is going to help us know whether our housing market is going to continue as a home ownership market or is going to continue shifting more toward a rental market. those -- notwith only with the millennial's, but
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with the boomerang buyers who lost their home during the foreclosure crisis? whether they stands renters or become homebuyers. >> the issue of supply is very real. that is why our eyes are on the home, to see if they are going to build or. new home sales are a small part of the inventory. if the builders do not start building they are going to have problems. in areas like california there are a lot of land constraints. either they are not allowed to build, or in there is not room to build. host: a tweet -- guest: those have come up over and over as a problem. dfa j hugecaused fha huge -- the
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problems. . they are trying to put something in place to deal with that. the issue with fannie and freddie has been going on for 18 months. there've been trying to cobble together legislation. there is a lot of consensus that these institutions need to be wound down in some way, and that the housing market needs to be less dependent on the federal government and more dependent on the private sector. the problem is nobody can really -- while everybody agrees on the goal, nobody can agree on the means. thatwill be an issue dominates the debate in congress for a couple of years. --st: final question that is the million-dollar dollar question,
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or trillion dollar question. i think we're seeing many -- inces of the market the market that that is taking place. markets like phoenix, a year ago we received 30% price appreciation, and now it is down to 13% annual price appreciation which is still very healthy and decent, but it is not realistic to believe that 30% appreciation is going to continue year after year. i think it is a good thing that we see this softening in the home prices. ideally, it is going to be more of a slow pullback on the bounce back we saw in 2013 rather than another drop-off on the cl iff. i would rather be talking about the problem which we are talking
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but now, that credit is too tight, and inventory is too low, i think those are better problems to have then we were saying during the last housing bubble. credit is very easy to get. i think those of the problems that led to the housing bubble. we are seeing a different set of problems now, and that is a reason that it is hopeful we're not going to see another housing bubble created. host: the vice president of the financialnd reporter covering the housing industry for the washington post. thank you both. segments coming up, we will be talking about net internety and the open with lynn stanton, and then we
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are going to talk about which industries are driving the u.s. economy. this is the washington journal. ♪ >> the wonderful thing about the gulf coast is that it is so underappreciated. that means that there is a lot to write about. if we were in new york, san francisco, or chicago, they are also well known. literate capital. here in the gulf coast we think floridaxas and the panhandle, there is a similar environment, similar types of
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s, soil, the gulf of mexico which nurses and supplies wonderful seafood. places like mobile they are wonderfully rich in tradition and culture. we have been and around all these things for hundreds of years. it is an extraordinarily rich subject to take. inng comes the oil spill 2010 role of the sudden we are in the center stage, and people are beginning to look at the gulf coast and think what is it like there? what moves them? we did not know we got so much of our oil and gas there, as of the nation tuned in to how important the gulf is. about the rich history and literary life of mobile, alabama on booktv and american history tv.
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>> you can now take c-span with you wherever you go with our free c-span out. app. download your free app on line for your android, iphone, or blackberry. >> washington journal continues. host: lynn stanton, what did the fcc vote on yesterday? for howroposed rules should they address with the appeals court date in january.
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the appeals court and sec had some authority on broadband access providers under the section of federal law that says that the fcc should try to encourage and advance advance communication capability. but they have to do it in a way that is proper. create common carrier toulations, by forcing them offer service to anyone who wanted it under the exact same terms and conditions. the court was saying that they have to allow them to be more flexible than that. did uphold one of the three rules of the commission in 2010 which is a transparency requirements that they have to tell their customers what they are doing by a network of management. overturned the
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other two rules. the proposal that they adopted yesterday, they are not rules yet, they are saying if anyone opinion wants to weigh in, we read the exact same language, but would do with a different justification. relying on some language in the court order that said that if the fcc had done this with the idea that the access providers had to provide some kind of minimum level, that it wasn't actually saying no blocking. that would be ok, and they are trying to pursue that route. for the. discrimination rule, they wanted becausee a new standard
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it is perceived as being far too weak and liable to allow companiesto charge like that licks -- like netflix for storage. providersthe access to charge what is called a prioritization among these providers. host: a couple of months ago the chair throughout the idea that thatrew out the idea on the have this internet. here is the headline in the washington post this morning.
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guest: i think that is a simplification of what they did. --is certainly how i lot of a lot of the neutrality andcates are describing it, a lot of the press coverage has picked that up. the gentleman was very adamant that that was not with a rubber pose a -- what they were proposing. there was a lot of language in the proposal that they adopted under thishat says standard, the provider could offer different kinds of access arrangements to different content providers, but the differentiation between what they offer the companies would have to be commercially reasonable. passwould also have to this no blocking standard with
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the minimum level of access. on noaid yesterday, uncertain terms, that what he as proposing would not allow provider to degrade the service that you are paying for. 5f you are paying for mak they cannot say that they do not want to send it to you. host: a clip from yesterday. >> i have had hands-on experience with the importance of network openness. i will not allow the national to beof an open internet compromised. i understand this issue in my
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bones. from when my companies were denied access in the pre-internet days. the consideration that we are beginning today is not about whether the internet must the open -- be open, but about how, and when, we will have rules in place to assure an open internet. i think he sounds pretty emphatic. purposing a slow lane and a fast lane. i suppose one could not take him at his word and read things into the proposals, but it does seem to me that a lot of the coverage the interpretation
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and the presentation that has been and some of the more strongly worded criticisms from the parties that advocate for a stronger approach. which would be too reclassified internet providers as common carriers. we cannot treat them as common fcc sayswhen the they are not. in 2005 they classified the asious technologies information services, which means that what they are doing is delivering information content, and it is so intrinsically tied with the information that it cannot be separated out. proponents of strong net neutrality what is for the fcc to unbundle and say we can separate them out and that accessssion piece, the
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fees, is actually a telecommunication service which would then allow the fcc to impose these regulations that it has that were drawn up by the court because then they would be common carriers and there's nothing wrong with reposing those regulations -- imposing those regulations. you would have to explain why in the last 15 years and did not think these were telecom services, and now they think they do. -- and now they think they are. host: net neutrality can get a little bit confusing at times. if you have been following this issue you understand what it is about. you can contact us the social media as well.
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everyone seems to be against what the fcc did yesterday. differentm two reasons for objecting to it. theset of people, republicans and network providers themselves, they were very circumspect in their language, but they object to the idea of the sec doing anything in this area at all. they do not want the fcc to regulate the internet, which is how they describe it. whereas democrats, for the most part, have taken the do not regulate approach. the of the democrats on havettee's of oversight tended to come down more on the side of take a very strong
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approach. what the chairman has proposed could be described as the middle-of-the-road approach. the only thing in the middle of the road is a yellow line. he thinks this is going to become roadkill. groupsublic advocacy against this proposal as well, even though as chairman wheeler said this would guarantee net neutrality in a sense. guest: in the sense of one's that advocate for consumer rights or digital democracy. media, they have all been strongly against his approach because they want that title two reclassification of common carriers for justifying it, which would allow the fcc much
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controlling for these companies rather than basing it on the mandate to encourage mitigations deployment. --t: if rod band were broadband were reclassified as a telephonerier, like a company in a sense, what could possibly happen as far as the regulation goes? guest: when they talk about doing that, they say we went forbear from enforcing a lot of style ofn carriers' keepingons, like accounting books to justify your rates, because they do not seem to be talking about any type of rigid regulation were a company would bring us a case where we charge our cost in our justifications.
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it was trying to get at the fact that the common carriers require no unreasonable or unfair discrimination by a carrier. they do have to offer the same service for everyone. if they offer this neighbor asked speed at exit dollars -- x dollars, they would have to offer similar kinds of offerings to the next neighbor. will allow for contract carriers, saying like a volume discount. month that minutes a i am carrying on a per unit basis, as opposed to someone who is only using one housing units of traffic. host: what are the regulations
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right now? if you and i have the same access to the internet as netflix or google and amazon? guest: no. and we wouldn't even under these rules they're proposing. the only rule that is in place is transparency. rule.a weak transparency it is not providing customers and add providers with enough information to really understand what the network operator is doing, what they're providing, and how they are doing it. in this proposed ruling that ruled and voted for yesterday, there are proposals for enhancing the transparency rules, to make them stronger, requirement to provide more information, requiring different information in different contexts.
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right now they have it up on a website right now, which they refer people to when they sign up. whether the information provided in your name whicould be different than to netflix and dogoogle. i am not running a multimillion dollar server out of my house. they are different levels of access. the idea that you have to go anywhere on the internet that , i would apply to everyone. the court decision views the management network as a service. making anyy are not
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money from the google or the netflix, or rovers providing a they realize that there is a relationship tween -- between the terminating provider, your service provider, and netflix. are talking about open internet rules, and the fcc. dorothy and akron, ohio. first off i watched the hearings, and i found it extremely amazing in the fact deliveredsides similarly interesting comments. what i found very reflective of people who were really voicing the loudest, those are were standing up and being taken out, had some valid points that they were not being heard. my concern over the years of watching the internet develop is how many times i have witnessed
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people who were not being -- using foul language, but bringing alternative points to them takenbut had down. the second and the issues are a very valid point, and the question is is this not just another encroachment on who we are as people to bring up valid issues that are being denied access to the american public? that can be in fact a part of , orr health, safety well-being in knowing what points are being taken off the table for public consideration? guest: i believe that you are yesterday's and the five protesters asked you to and
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not vote for the proposed rules, and they were escorted out i security. they were not allowed to go to the mic or speak up. fcc did not think that was what the meeting was for. they are required by law to meet once a month and go over major decisions. there is an opportunity at the fcc, which is the purpose of the vote yesterday, for the public to tell us what they think. in february, when the chairman he was askinghat staff to do, to draw up a notice that would propose these rules, there has been an opportunity online public to comment , and there are thousands and thousands of inputs from the public that you can go online and see.
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it was a rather unusual approach. it immediately opened up a file online for people to start comment on the new proposals. has an open now for four months, so anyone who is interested in is you should go online and tell them what they think. actual --have the what is this report? guest: this is the notice of proposed rulemaking. rules?his is the guest: this is what they voted on yesterday. she did vote to do this -- host: why did she vote for it? guest: presumably she recognized
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that at some point you need to start a process by which you can act on what you were hearing, and all this information coming in. it is less likely that she got some changes in the wording. there is a graph that came out that they public or revealed -- publicly revealed these things that went some more focus on the possibility of title ii reclassification that neutrality advocates would like to see. proposes, at least for the idea of using the second seven.
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host: how dense is this reading? guest: not some of the , with this section and that section, but the general public could read it. i believe people see the andrnet is very important functional to their lives. is done onyou do now the internet. your ability to perform groups to discuss politics like this, able to not do that just with people in their neighborhood. they signed petitions, they organize online, and it is possible potentially down the road that of carriers are aboutd to make incisions -- decisions about how they are offering the services, they will
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be able to send what you want through it, and have come back what you want through it, that is the view of the net neutrality advocates. the best way to balance making sure there is this openness for everything that is needed, for endeavors, new companies that are getting startups they cannot afford to pay with a company might want to charge google or netflix for access. balancing those ideas with the you make the regulation too onerous, providers may be discouraged in broader and faster pipes and facilities. building out to new areas. they are trying to balance this to ideas. host: richard, in new york city. i absolutely agree that
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common carrier status needs to be for the isps and providers. host: why? caller: several reasons. we need more transparency. 3-4urrently pay between pooreste portions of europe for one third of the speed they get. in many places there are only one or two providers that are given local monopolies. that cannot be handled by the fcc or congress. but what congress could do is restrict those who provide content, like comcast, or time warner, from hitting isps because there is an inherent
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conflict of interest. they want their services to be sold, but other companies like netflix, they have interest in restricting them in addition to that. they can restrict how you use your internet connection, they om runningou fr personal servers. some big issues with how we do internet in this country, and we really need to separate out those with a vested interest in selling us content from providing us the internet pipes. not i merrily my point. primarily my point. where letting the foxes guard the hen house. good point,ised a
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that gets lost in this debate over the title ii works in sectionseven -- versus seven. he is right that those who have video or cable service could possibly view netflix as a competitor, although if you go to the cable industry events you hear them talk about themselves a rock band providers. providers.d that is where the profit is coming. that incentive, and presumably there will be other services you want to offer to compete with other kinds of edge providers. storage in the cloud, which competes with amazon and other
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companies. everyeasier to charge amounts between the different people who want to use the capacity and make more money that way then to take that capacity and turns them last because many do not have the demand constraints. for legroom on the airplane. charge a littlern but more because people thought you a little but more comfort. the average person will say i cannot pay another $50 for this them i will go with the congested access. those are the main points. used the yo have
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terms title ii and section seven. guest: title ii is to reclassify telecommunication services, which are allowed to be regulated as common carriers under federal law. host: that could lead to a lot more regulation and transparency. one sentence from this we could redefine what common carriage is, and if we say common carriage does not include the things we want to do to these companies, the court would no longer have a reason are applyingu common carriage to them because it would no longer mean what has meant in the past. there are miserable ways of getting the cat -- multiple ways of skinning the cat.
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the fcc and the state utility commissions share the encouragement and advancement of telecommunications ability. there is a virtuous circle, that of edge providers are allowed to thevate and provide inc. consumers want, consumers will want more broadband. the consumers will more broadband, the network providers will provide more broadband, the demand will drive supply, and they will build out, and that bring in more telecommunications abilities. -- as they're more ou there are more abilities, they will innovate more. do they want to reclassify
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common carrier or reclassify the commentary or standards so that broadband is included? guest: taking him at his word baidu not and that chairman wheeler wants to do that from a practical stand way. he professes to believe that difficult,be more and take longer for the rules to be really enforced in final, and create the potential for being overruled again and cour -- in court. this was the second time that the court had struck down the attempt to regulate network management by broadband providers. they are batting 0-2 for now, and they are looking to not go 043. been givingoner has
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some indication that she is somewhat friendly to the idea of a stronger approach and reclassification. although she is the one we refer to, because she says we need more time to think about this -- she says she believes in an open internet, but she is not talked about the specifics of what she prefers. from the outside looking in, there seems to be some idea that e and thee or sh commissioner were advocating a change in the draft. given that the republican commissioners say they did not until a day later,
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the impetus to greater openness had to come from either the commissioner -- of the commissioners. host: darren, and washington, d.c.. joe, inmove to covington, georgia. caller: the democrats want to control all of the information -- that is go out going to come out, since they have lost the media. not look these people regulating anything i do. theseill put all of progresses back in it. host: we have a tweet --
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guest: i think advocates for stronger net neutrality would argue that it is a bit of a false premise. axistil about 2000, the did operate under commentary regulations. when they started to reclassify these companies, they operated as dial-up access them and rod access,ess -- broadband this all started a little bit with cable companies arguing over whether or not it was a telecom service or a cable service. they were arguing it was a telecom service because the dispute originated with local amenities you wanted to treat it as a cable service and get the kind of fees that cable companies have to pay to local communities.
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, it operated under common carriage, and then over the past 15 years there have been these attempts of the fcc werepose principles that not specifically rules. later the rules were struck down, but there were in place for a while. there have not been long times some the carriers want kind of approach, and realistically and pragmatically, they are related and other aspects of their lives by the fcc. they do not really want to rock the boat too much. and there's no actual rule in place, they have probably been having political constraints or a regulatory constraints because the need the approval to engage
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in a merger, and commitments to abide by various forms of open internet kinds of regulations and conditions. a lot of companies have operated in some degree over time in that. bit notise is a little entirely true to say that the internet has operated fine without any claim of common carrier approach or guarantee that people who use it can go where they want to go. operated -- has actually operated under more selling, less so. it tends to cause a lot of road test -- protest. host: scott is calling from
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illinois. caller: thank you for taking my call. in 1995i moved out to california with my wife. we were listening to the radio started and they cussing on the radio station, and i called the station and the fcc has a regulation that says you cannot do this. they basically mocked me and said that we can pay off the fine. fines that ther fcc can do and hold them accountable? in general, the fines are on a per day per violation basis. if they internet side, were imposing fines, it would be settled rather quickly because you can have a whole lot of
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violations when you have these millions and hundreds of thousands of customers. radio one and on the instance of cussing is going to be one instance. , in general, be one instance. unless you're retransmitting the program out, every single affiliate would be doing it. but if this was a local programming, the amount of the fine would be limited. i cannot see off the top of my head with the number is, but it is less than $50,000 per violation. host: another tweet -- guest: certainly not for another four months because the comment
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time does not close until four months from yesterday. if you look at the ruling in january, it took until yesterday rulesft a proposed set of and all of the questions atwood would want to ask and think about. -- it would want to ask and think about. it is hard to imagine they would be able to draft a final order in much less time than four months. two month with incredible speed for normal fcc action. towards the very end of 2014, before we could even expect to see anything. actionhat was comcast' -- comcast's reaction to yesterday?
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support openay we internet but we provide open internet, we are happy to cooperate with the proceedings. host: but behind the scenes? guest: there are other groups present the stronger view, and there are a lot of criticisms that the fcc should not be regulating the internet. the shorthand that people use for internet access regulation. that the two things fcc says isg -=- all pondered together. there's is the speed back and forth, and then all of the services you want to be of the get. proposing to put some
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regulations on the provision of that connection from your house to theirobile device internet backbone. public knowledge is a very active group in this field of consumer advocacy. what is their reaction? guest: they are amongst what i would call the strong neutrality fcccates, and they want the to take the title to request the occasion -- title two reclassification. i do not want to quote anyone specifically, but their words some veryere were strong language from that group about how this would kill the internet. these were these emotional kinds
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of -- host: comcast would not have a problem with this so-called faster lane? fasterif there were a lane, there were allowed to charge, as providers, for better access in some sense to their customers, and they would not have a blo problem. in the immediate future, they might need even mind -- not even mind other people being able to do it, because they're under restrictions themselves with nbc universal. they are under obligations to abide by the 2010 rules that the court overturned in january. they are still under that obligation until 2018. host: it would not have the
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problem of having this being regulated as a common carrier? guest: they only believe that with that kind of really strong authority over these companies, that they would be guarantee the protection they would like to see people have to really use the internet in a robust way without being restricted and -- in any fashion. host: so what came out yesterday was something for everybody? middle of thevery road, with down armadillos -- dead armadillos. hisral wheeler describes approach as being aimed at ensuring survivability of the roles. -- rules. making sure that they can survive court challenge.
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it has the effect of being an attempt to walk the middle of the road politically. -- the maine main thrust of the proposal is not to reclassify, or back off and let network providers use their own ways to decide how to manage the network without input. to walk the middle of the road, however you want to view that. host: greg from north carolina. caller: thank you for taking my call. going to risk oversimplification, because i do not have a lot of time. toant to give this spot on lynn and mr. wheeler. via-blocking creates jobs
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small businesses as opposed to too big to fail with consumer limits. guest: i believe what you were getting at is the idea that antiblocking encourages the startup of new businesses, small businesses, new edge providers as frequently asserted and debates hi, they are the creators of new jobs. by allowing them to innovate without permission, because they know they can just use the internet and not have to get a -- provider toer sign off on their service and get a special deal, they can freely invest in new businesses and services. host: what is the next step in this process? guest: four months of people
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weighing in with their comments. i would not be surprised that at some point there would be a hearing. they will be collecting, unless they extend things but they would then start final rules in light of the input they have received. probably a a lot of negotiation. the commissioner is going to have to win the support of his fellow commissioner who has talked about how she wanted shrug her roles in 2010 than what they adopted. than whatr rules they adopted.
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they were asking for more title proposedge in the rulemaking. hears something over the next four months that makes her change her mind, possibly to get her but he may have to do -- vote, there may have to be some negotiations between them. being with you for us. we are going to be looking at the industries that are driving the economy, and those that are not doing so well. the new way look at that the u.s. government is measuring the economy. ♪
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>> several members of congress, acting in good faith, have put forward plans that address our long-term funding issues, and we applaud them for their efforts. i know there will be more to the discussion in town this week on those attempts. thers are suggesting that political reality is we will have to settle for an infusion of cash into the highway trust fund as a stopgap measure. where are you going to get the cash? ways toto be there were do it. i think it is a little tighter now than it was. we can getrue that an infusion, but if this is hardly the long-term solution we need, if we want to maintain a
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world-class infrastructure system. every three years we wake up and have the same conversation same fightsng, the over the tax, and the same scramble for money. the only problem in recent years is that we have not been doing very well. you do know, that it has been 20 years since we increased gas tax. do not give me wrong, money is important. you cannot make the -- if you do , but that iscash not always have to do to get the infrastructure issues working. if you look at everything that is being discussed in recent days and weeks of wound the environmental -- around the there isntal issues, conflict and what we are trying to do and where we are trying to spend our money. isn everyone would agree to
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we need a comprehensive, forward-looking program that meets the needs of a competitive labor century -- wendy first 21stury, and that -- century, and earns the support of a jaded citizenry. >> this weekend, a look at the economy and infrastructure, and we are live at the book festival on saturday. former10:00 p.m., justice john paul stevens. washington journal continues. host: the u.s. government is now measuring the economy in a different way. thatve to find out what
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way is today, and we are also going to figure out which industries are doing well and which are not doing so well. , the u.s. is greg ip economics editor for the economist. ericjoining us is and if you could, how are we now measuring the economy? how is the u.s. government now measuring the economy? guest: what is really need now is for the first time ever in the united states we now have economic data on industries on a quarterly basis. how those industries are impacting the u.s. economic growth, economic activity, and that is the new thing. what we are doing now is providing, if you will, and earnings report on economic activity that is generated by
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industries on a quarterly basis. we can look at an industry total sales, it's total input costs, , and thematerials economic value that is generated by these industries. host: what is the value to businesses and to the american public of knowing and measuring the economy this way? guest: i can think of two broadway's. ways.ad was flat andat gdp the beginning of the year, but we did not know why. we could not in for this, infer this before, and now we can because we can look at the data and see what is pulling this forward and .holding us back guest: this is developed.
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when we think back to the great recession and to the beginnings of the recovery, what we have realized is that we did not have complete and consistent information on a real-time basis to understand the performance of u.s. industries. we had monthly and quarterly salesation on things like and shipment industry by employment. what we did not have was comprehensive and consistent information on the u.s. economy and terms of the performance of u.s. industries. how much they were adding to or subtracting from economic growth. this is the new thing we have now with these statistics. the: who are some of winners and losers in this economy. ? ? -we will start with this chart. it shows the third quarter of 2013 and the fourth quarter.
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of colors in here and a lot of different categories. help walk us through. we have tweeted out these charts, so if you follow us on twitter you can go there and look at these charts for yourself. the dark blue line here is gross domestic product. what i am reading is, four percent growth overall. growthe over two percent in this quarter. is that correct? guest: that's correct. what we do before we issued this first report is, we knew the growth rate in the economy had slowed. from the third quarter of 2013 to the fourth quarter. knew something
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about the composition of growth from the standpoint of what people spend, what consumers spend, what business investment is like and so forth. what we now know is the industry , the breakout of industries in the economy and how much those industries are contributing or not. what this chart is showing us, if you look to the bars to the right of gdp, we are looking at some of the major industry groups that were contributors to economic growth in the first quarter -- fourth quarter. we see the manufacturing sector in gold. there was picked up growth -- picked up in growth in that sector and the mining sector. there was growth in the wholesale trade sector and the professional and business services sector. would we see the last three bars on the left side, the industries
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that were a drag on growth. there was a real slowdown in real estate. valuewas a drop in the created by the construction sector. about six percent. also a drop for retailers. host: how much of this is due to weather? guest: there might have been some of that in the fourth-quarter. the real weather impact will not come until the first quarter of this year. what i find striking is, if you look at third-quarter, you see large contributions from construction and real estate. almost no were negative contribution from real estate and construction. seriesre very volatile of data. that back and forth, large quarter to quarter swings. we look at these
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statistics over a longer time, we do see some ups and downs. that is reflective of the ups and downs in the economy. when we think about the real estate sector, this december was a hot real estate market. there was a cool down in housing real estate and commercial real estate in the fourth quarter. we are seeing that in these numbers and we think about construction, there was a story between construction and real estate. saw higher construction prices in the fourth quarter for new family homes. and for the prices that people pay for residential improvement. tryinguntil now, we were to figure out what was going on in the economy at the industry level. we would look at employment because the bureau of labor statistics gives us very detailed information every month on which sector is adding or losing jobs. can we learn things from this
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data that we cannot learn from the labor data? will we see the numbers going in different directions? guest: we can see that. one of the nice things about this status that is, we do think about this as an earnings report or the value of economic activity. we can look at the total sales figures, the total revenue generated and we can compare that to the growth in the input cost of the industry. deducting the input cost from the total sales figure. we get to the value creation of that sector. we can see some more things about these industries than purely looking at the labor story itself. host: you look at these charts that we are discussing -- what havetries in the last year really done well and you have seen great improvement since the recession? guest: if i could turn to one of
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the charts here. to the piee to turn charts. i find this really interesting because tom if you look at which industry accounted for how much gdp just before the recession began -- left of the chart. how much they now contribute. i'm surprised by how little has changed gr. there was a lot of discussion about this crisis was not just a -- it was a convulsive event where we had put too much resources into construction finance and not enough into high-value services. were going to see relocation from those. when i look at the stata, i don't see that. the economy today looks a lot like the economy of seven years ago.
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data.n i look at this guest: when we look at the comparison point of the fourth quarter of 2013 and compare it to win the recession began, most of these major industry groups have returned to the size that they were at. red is a larger share at this point that it was in the fourth quarter of 2007. guest: that is really remarkable. the financial sector where we over,ts of firms take mortgage losses, mor companies shutting down, yet, it is as big as it was six years ago. can you shed any light on why that is? that some arein
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bigger and some are smaller? the housing crisis preceded the great recession. what we don't quite see in this pie chart is what happens before the fourth quarter of 2007. certainly, when you dive deeper into the statistics, you see differences in how financial services and insurance services fared. -- we see that rebound in the housing markets. that is what is driving these shares. host: the size of the government and its contribution to our economy -- the numbers on the screen, if you want to participate in our conversation about how the u.s. economy is measured and which industries are driving the u.s. economy. you can see the numbers there on the screen divided by region. start with you, greg.
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12.8% of the overall economy is government generated. is that a correct statement? guest: from what it says here, yes. host: what does that say to you? guest: if i could turn to another chart here. it?e is this one here. how was the was a performed since the great recession? page nine. you will see the light blue bar is government. -- what is really striking to me is it grew in the initial years of the recession and shrank. overall gdp is larger. output is larger. i find it really interesting that government actually has failed to grow its share of national output in the last seven years.
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there are a couple of things going on here. the main thing going on is that not withstanding some big stimulus programs in the early years of the recession, there was a switch posterity at the federal level and state and local level. i suspect that going on in these numbers, you see large cuts to services provided by state and local government in the areas of education, health care and social services. guest: you do see that. for is the aggregate government. this includes federal spending and local spending. if you were to decompose this overtime come he would see those spending levels at the state and local levels. that beginning of the recovery. in more recent times, you see government spending where we have had restrain federal spending. that is now the driver of that trend for government. guest: is that military spending? guest: there's an aspect of
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military, defense spending. there are national securities in their and discretionary services as well. eric, what can you tell us about the manufacturing industry? which is growing. and improving in the u.s. guest: this chart we're looking at here look set the manufacturing sector -- looks at the manufacturing sector. the total sales. the manufacturing sector supply chain. that is shown in the goal. host: here is the great recession. guest: in grade. what we can do with these quarterly statistics as we can detail, themore performance of the manufacturing sector over this time. we can compare this total sales like figure for manufacturing and this up light chain to the blue, which is the economic value that is generated by the
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manufacturing sector. that,e see in the cold is the total sales, the supply chain sales had a deeper contraction over this period then the value generated by the sector. the value that we generate from the manufacturing sector is the sales minus the raw materials. if the netting of the materials. we see a larger contraction in the supply chain then the value the value added. another interesting thing we seen this chart, if we compare the fourth quarter of 2013 to the peak of 2007, the total sales for manufacturing have not recovered. of course, this reflects increasing trends in globalization.
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that will be reflected in these numbers. you see the differences in the economic earnings of the sector versus the supply chain sales. chartshat value do these bring to you? guest: a couple of things. as eric and i were discussing, until now, when i wanted to ask which industries are leading us forward, i only had employment data. it was monthly, but heavily revised. it does not tally with going on n of activity. at the number of workers is going on because they are so much more productive. you could have the office situation where the number of workers is going up, but their output is going on. it is helpful to see what is going on with what output is doing. it helps us ask whether some of the things we grew anecdotally
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are really showing up in the data. about the lot of talk manufacturing renaissance. how is leading us forward. people are bringing jobs back from china. that's probably true on an anecdotal basis but it does not show up in the aggregate data. yes, manufacturing has just made it back to the level of sales and output it was at the start of the recession. in that time, the rest of the economy has continued to grow. manufacturing is a smaller share of the economy than it was seven years ago. it's like a situation where it's thereown so long -- really isn't a renaissance here to speak of. host: the bureau of economic analysis. mark and phil delta. -- mark in philadelphia. caller: my question has to do with tax aversion. especially the astra seneca situation. pfizer has $120 billion stashed
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overseas in profits. not taxed by the american treasury. if pfizer becomes the u.k. based corporation, that wondered when a billion-dollar -- that 120 billion-dollar earnings will escape taxation. we're talking economic armageddon. $4 trillion held overseas. guest: i'm not a tax expert. that that money has already escaped u.s. taxation. that's because of two unusual features of the u.s. tax code. u.s. is the only country that texas corporation on the income earned in every country. if we have a tax treaty with that country, they are not required to pay taxes on that income until they bring it back to the nine states. the vast majority of these corporations leave that money
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overseas and don't bring it back because they don't want to pay tax on it. i am not exactly sure what the tax treatment will be of money they move their head quarters to the u.k. if they stay here, it's not like they were going to get their hands on that money anytime soon. host: do you separate out agriculture? guest: we showed agriculture as an aggregate sector in these courtly statistics. what we do in our annual data and in our quarterly data is farming from forestry and fishing and logging. ag is not chart, in this chart. correct? guest: it is just showing the major industries that were drivers of economic activity in the fourth quarter. some of those industries were
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flat. you have seen other industries that do show up. host: we will get to idaho. caller: good morning to everybody. , the foren wondering agricultural product was brought up, how accurate these charts are. ,f you do think about it actually, agricultural output of all kinds, including commodities, dairy, cattle, fishing, farmers involved in tree farming, state-by-state, agricultural commodities outweigh any other kind of industry. ,ithout farming and agriculture think of what our economy would be in america. we would not have anything to sell overseas.
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drives manufacturing. host: are you a farmer? caller: yes, we are. we are a small farmer. this year, we have paid more taxes than ever because farming has been better the last few years. the output of farming in this country is really the biggest industry of all of them. host: what do you grow? wheat. our main crop is we used to be dairy farmers but we ran out because we live in a small town and we had to haul our milk so far, transportation and gas prices were so high that it did not paid to dairy anymore so we gradually transitioned to cattle farming. we are considered small potatoes. herdst have a small cattle and we have a relatively small farm.
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overall, i do believe that agriculture is actually the largest industry of all. it supports more jobs than any other. ma the role of agriculture in our economy. guest: agriculture does indeed play an important role in the economy. these courtly statistics is that they can fluctuate. the conch patient can fluctuate over time. frequencyly on the can see this data. agriculture is an important beveragefood and the manufacturing. when we think about the ,anufacturing sector agriculture plays an important role. case thatis the agriculture is very big in our minds and hearts, especially in the history of this country. the hard data here tells us it is not that big as an industry.
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agriculture and mining combined are only four percent of output. that is up from 2007. i'm quite confident that if you give me data from 100 years ago, it would be down a lot. that again tells us the contributions of this data. even when you have these very , you multi-decade trends can get movements around that trend. i would not be surprised if she is right. in the last few years, agriculture has been a net grower. prices have been very strong. we have had big growth in emerging markets, which are huge customers for us. you may see agriculture or some other industry outperform, even if it tends to be larger over time. host: we should walk our viewers through this one pie chart. snapshot from the fourth quarter. this is what the u.s. economy is made up of.
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finance, insurance and real estate. 12.8% government output. is information and professional services. -- full .5% manufacturing. 18.6%, other services. manufacturing. here. agriculture and mining at 4.2%. 3.7% is construction. maryland, on washington journal. caller: thank you for taking my call. when i heard that there was a renaissance in manufacturing, one idea hit me. madeu watch how things are and you see this one person and
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all of these robots and machines turning out the product. what happens when there is no people and all of the robots are turning out the product? theink we ought to tax robots since corporations are people. the robots are children of these people. we should tax all of the robots and to them pay into social security tax. we will leave those comments right there. david in -- do you measure employment in your system? guest: in these statistics, we are not releasing employment figures. we rely heavily on the employment figures and the wage figures that are reported by the bureau of labor statistics. host: david in ohio. ohio.: i am in warn, once down.
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warren, ohio. my question is, what would have had a witchcraft over the manufacturing increased -- a wage graph over the manufacturing increase graph. guest: when you look at all of the input, production for manufacturing, what we know about labor is that there were many job losses in the manufacturing sector. during the great recession when jobs had to recover during that time. you can see trend lines where there has been this recovery at the many factoring sector when you think about the economic value that the sector contributes.
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ofor is an important source that contribution. so was the machinery that the prior viewer identified. the capital equipment is also going to be showing up in the valley will creation for this sector. thing thatink one often surprises people is, when they see a figure that says, many factoring is as big as it was seven years ago and you hear stories about people who have lost their jobs and they did not come back, they wonder, how can this be? we're talking about real output. how many widgets that industry makes. productivity and competition have been such that e price of those witches have gone down, people aren't making a very good living. been for theas
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customers. since the auto industry was bailed out, we are now back at sales of domestic made vehicles that were not far off from the peak before the recession. the employee fewer people because the value being added to the industry -- they are more productive. you go down to your car dealer and you buy it and you start saying, well, i would like a car with an mp3 player. that is now standard. time, the progress and betterion gives us products at the same or lower price. on the other side, the manufacturers and the workers are not getting that showing up in their paychecks. illinois.stock, caller: thank you. a differenthis in context. the role of democracy in our economy.
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i started asking the following question during the crisis. i asked a number of people, if shoreline ande uncle sam stood there with $100 and democracy and the other hand had $100,000 and fully terry and totalitarianism, which choose?u democracy is the path that gave them a position they are now in. we had people who i thought were going to say $100 automatically and came back to us go days later and told me he needed to is why hecar and that
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chose $100,000. that is the discussion we have to have for our business leaders. they benefited from that path to democracy. also the president. that is the real issue and not the economic pie chart numbers. host: any response to that caller? -- this istarp money a concern and perception you still hear all the time. thner just published his memoir. you saved the financial system but you did not do much for the average american. it was not a choice to save the financial system or the economy. wasng the financial system necessary to saving the economy. that is what he struggles to put forward. at a broader level, i don't think you have to choose between
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prosperity and democracy. i believe that one is necessary to the other. how detailed is your --lysis of guest: this is the new feature of this report. i drew parallels and thinking about this as an earnings report. an earnings report for industries and their economic value. what we do with this new set of statistics is, we bring in the full suite of economic data that is available within the west system -- the u.s. system and bring in information from private sector sources and trade associations. we provide a unifying framework to try to make sense of all of these different data sets. sometimes they tell different
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stories. we are trying to bring this all into one package with these new reports. sales look at changes in or shipments for an industry and how that compares to the employment figures. and how those translate into value creation for the sector. that is the feature we have now that we did not have before we released this report. release thehe quarterly reports -- when do you release the orderly reports? guest: we release them within 30 days of what we refer to the third release of u.s. gdp. it comes out within 120 days of orders.rence o we know there was a real slowdown in the first-quarter of .13. it will go through a couple of revisions over the next few , on july 25, will
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release a set of integrated industry statistics that will allow us to better understand the role of industries in that growth rate for the first quarter of 2013. host: greg is the u.s. economics editor for the economist trade thank you for being with us. c-span2 andnds, tv and turn two book american history tv. you can see the book tv website there. 48 hours of nonfiction books and authors. the television for serious readers on c-span2. this weekend, book tv is live from the gaithersburg, maryland book festival. go to book tv.org for more information and the full 48-hour schedule. you can do the same thing for c-span3. if you want to find out what is going on on american history tv on c-span3, you can go to that
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website as well. have a great weekend. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014] ♪ number of event here in washington. at 11:30 a.m. we will hear from hillary clinton, 2016 presidential candidate. we will be speaking at the conference today. we are also the hearing from eric schmidt. we will have a here on c-span. at

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